Contributing 6 percent to 401(k) not enough

8:05 PM,
Dec. 19, 2012

Sadatoshi Tomizawa Modern Languages & Classics

Written by

Terry Zivney

Modern workers have long depended upon Social Security, employer-based pension plans and personal savings to support them in retirement. Surprisingly, it is not an impending Social Security crisis but the replacement of traditional pension plans with 401(k)s that is the biggest problem for funding retirement. Too many workers rely upon the mistaken belief that contributing 6 percent of their salaries annually to a 401(k) is prudent planning.

For many, the 6 percent contribution is achieved by reducing the personal ...